India Launches CNG Station Scheme Amid National Network Enhancement

February 13, 2019 | India: New Delhi | Source: Government of India

India’s Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship Shri Dharmendra Pradhan this week launched a Dealer Owned Dealer Operated (DODO) model for setting up CNG stations. In a written reply to the Rajya Sabha, India’s Council of States, he also described measures being undertaken to massively expand the availability of natural gas across the nation.

Dealer Owned Dealer Operated

Shri Dharmendra Pradhan released the general guidelines for the DODO schemes, under which the entire earmarked dealer plot shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of City Gas Distribution (CGD) activities. Under the scheme, 87 Geographical Areas (GAs) serviced by 23 entities authorized will be covered.

More than 1500 CNG stations are presently operational in the country, catering to the demands of over 33 lakh CNG vehicles.Under the 9th round of CGD bidding, more than 4600 new CNG stations are expected across India in next 8 years. The ongoing 10th round of CGD bidding envisages to cover 50 GAs, covering 124 districts spread over 14 states, accounting for 24% of India’s area and 18% of its population. After the 10th bidding round, 53% of the country’s area and 70% of its population will have access to CGD networks. As more and more CNG stations come up, more than 10% CNG stations may be based on DODO model.

Speaking on the occasion, Shri Pradhan said that the country is moving towards the gas economy, as this fuel is cheaper and less polluting. He called upon the investors and private players to participate in the growth of gas based economy by using the opportunity provided through DODO.

Expansion of Gas Pipeline Network Across the Country

India’s Government has envisaged to develop the National Gas Grid and CGD networks in the country to enhance the availability and accessibility of natural gas to public at large. This will lead to laying of more gas pipelines, increased production and availability of the gas, and also last mile connectivity of the infrastructure to provide CNG and PNG to the consumers.

At present about 16,788 km natural gas pipeline is operational and about 14,239 km gas pipelines are being developed. These pipelines have been authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB) and are at various stages of planning/execution/pre-project activities etc. With the completion of 9th CGD Bidding Round, CGD would be accessible in 178 GAs covering approximately 280 districts spread over 26 States and Union territories (UTs).

PNGRB has reported that as per commitment given by various entities in the GAs approved for issuance of Letter of Intent (LoI) in 9th CGD bidding round, approximately 98,000 km of pipeline will be built. Completion of 9th round and 10th round of CGD network will involve more than INR one lakh crore (USD 14 billion) of investment in the CGD sector.